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Question 21 1 pts Mr. Lee is considering a capacity expansion for his supermarket. The current capacity is equivalent to $300,000 sales. Assume a 20 percent pretax profit margin. The annual sales projected for the next five years are as follow. Year Annual Sales (5000) 1 3 310 320 340 370 400 5 If Lee expands the capacity to an equivalent of $360,000 sales now (year O), how much would pretax cash flow in year 1 increase because of this expansion? Less than $3000 More than $3000 but less than $5000 More than $5000 but less than $7000 More than $7000 Previous Next